PARRIS N. GLENDENING, Governor

Ch. 35

Defined terms: "Advisory organization" § 11-101
"Agent" § 1-101
"Commissioner" § 1-101
"Insurance" § 1-101
"Rating organization" § 11-101
"Reinsurance" § 1-101
"State" § 1-101

11-226, RATE ADMINISTRATION.

(A) LOSS AND EXPENSE EXPERIENCE.

(1) (I) SO THAT THE EXPERIENCE OF ALL INSURERS MAY BE MADE
AVAILABLE AT LEAST ANNUALLY. IN THE FORM AND DETAIL NECESSARY TO HELP
THE COMMISSIONER IN DETERMINING WHETHER RATING SYSTEMS COMPLY WITH
THE STANDARDS SET FORTH IN THIS SUBTITLE, THE COMMISSIONER SHALL ADOPT
REASONABLE RULES AND STATISTICAL PLANS THAT ARE REASONABLY ADAPTED
TO EACH OF THE RATING SYSTEMS ON FILE WITH THE COMMISSIONER FOR THE
RECORDING AND REPORTING OF LOSS AND EXPENSE EXPERIENCE.

(II) THE COMMISSIONER PERIODICALLY MAY MODIFY THE RULES
AND PLANS ADOPTED UNDER THIS SUBSECTION.

(III) EACH INSURER SHALL USE THE RULES AND PLANS ADOPTED
BY THE COMMISSIONER TO RECORD AND REPORT ITS LOSS AND COUNTRYWIDE
EXPENSE EXPERIENCE.

(2) THE RULES AND PLANS ADOPTED UNDER THIS SUBSECTION MAY
ALSO PROVIDE FOR THE RECORDING AND REPORTING OF EXPENSE EXPERIENCE
ITEMS THAT ARE SPECIALLY APPLICABLE TO THE STATE AND ARE NOT
SUSCEPTIBLE OF DETERMINATION BY PRORATING COUNTRYWIDE EXPENSE
EXPERIENCE.

(3) IN ADOPTING THE RULES AND PLANS, THE COMMISSIONER SHALL
GIVE DUE CONSIDERATION:

(I) TO THE RATING SYSTEMS ON FILE WITH THE COMMISSIONER;

AND

(II) TO THE RULES AND TO THE FORM OF THE PLANS USED FOR
THE RATING SYSTEMS IN OTHER STATES, SO THAT THE RULES AND PLANS MAY BE
AS UNIFORM AS IS PRACTICABLE AMONG STATES.

(4) AN INSURER MAY NOT BE REQUIRED TO RECORD OR REPORT ITS
LOSS EXPERIENCE ON A CLASSIFICATION BASIS THAT IS INCONSISTENT WITH THE
RATING SYSTEM FILED BY IT.

(5) (I) THE COMMISSIONER MAY DESIGNATE ONE OR MORE RATING
ORGANIZATIONS OR OTHER AGENCIES TO HELP IN GATHERING AND COMPILING
EXPERIENCE INFORMATION.

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